This morning, Accord Mortgages has announced rate cuts across both its residential and buy-to-let (BTL) mortgage products. The reductions, which take effect immediately, will likely improve affordability for a range of buyers, from first-time homeowners to seasoned landlords looking to expand their portfolios. In an environment where rate increases are currently very common, this is certainly some more positive news that we perhaps weren’t necessarily expecting! In this article I will run through the reductions to Accord mortgage rates and what they might mean.
Lower Residential Accord Mortgage Rates
Accord’s latest rate changes will benefit borrowers at various loan-to-value (LTV) tiers. The reductions apply as follows:
- 75% LTV – Selected products reduced by 0.10%
- 80% LTV – Selected products reduced by 0.10%
- 85% LTV – Reductions between 0.07% and 0.10%
- 90% LTV – Reductions between 0.05% and 0.10%
- 95% LTV – Reductions between 0.05% and 0.10%
- £5k Deposit Mortgage – Reduced by 0.05%
These reductions could provide much-needed relief for homebuyers facing affordability challenges amid the current economic climate. With inflationary pressures easing and swap rates stabilising, lenders are beginning to drop their rates, making home ownership a more viable option for many.
Substantial Buy-to-Let Mortgage Reductions
Landlords and property investors will be excited by the significant reductions in Accord’s BTL product range, with the following changes now in place:
- 2-Year and 3-Year Fixed Rates – Reduced by 0.25%
- 5-Year Fixed Rates – Reduced by 0.20%
- Tracker Rates – Reduced by 0.05%
- End dates extended from April to May
These changes are likely to help landlords who have faced increased borrowing costs due to last year’s sharp interest rate hikes. With demand for rental properties still high and government policies affecting the buy-to-let sector, lower mortgage rates could help property investors maintain profitability and encourage further investment.
What This Means for the Mortgage Market
The mortgage industry has experienced a turbulent few years, with rising interest rates making homeownership increasingly challenging. However, Accord’s decision to cut rates is a promising sign that the market is stabilising. The reductions come at a time when other lenders are also making competitive moves, potentially signalling a shift towards a more borrower-friendly environment.
In the broader market, lenders are increasingly vying for business, offering more attractive deals to entice borrowers who may have been hesitant due to high rates. While it is uncertain how long this downward trend will last, current borrowers should definitely be looking at the positives and looking to secure a new lower mortgage rate.
Get Expert Mortgage Advice
While the recent reductions are great news for borrowers, securing a good rate can still be complex. Whether you’re a first-time buyer, home mover, or buy-to-let investor, seeking professional advice can help you secure the best possible deal for your circumstances. Call us at Oportfolio Mortgages today and let our experts guide you through the process.
